logo
Saudi Arabia's non-oil private sector shows rapid growth in March: Survey

Saudi Arabia's non-oil private sector shows rapid growth in March: Survey

Al Arabiya07-04-2025

Saudi Arabia's non-oil private sector activity grew rapidly in March with new orders boosted by lower prices and improved economic conditions, although the rate of growth slowed from January's near 14-year high, a survey showed on Monday.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) edged down to 58.1 in March from 58.4 in February but remained far above the 50 mark signaling growth.
The new orders subindex slipped to 63.2 in March from February's blistering 65.4 reading.
Despite the slower momentum, businesses engaged in stockpiling, anticipating sustained sales growth.
Employment growth was driven by increased sales volumes and efforts to boost capacity. The survey data pointed to the best quarter for job creation in over 12 years.
Naif Al-Ghaith, Riyad Bank's chief economist said that improved business conditions are supported by government efforts to enhance regulatory frameworks and infrastructure investments, paving the way for greater private and foreign investments.
Saudi Arabia's Vision 2030 plan to diversify its economy away from hydrocarbons aims to increase the non-oil sector's contribution to GDP to 65 percent by 2030. It is currently over 50 percent.
Input cost inflation eased to a four-year low in March, prompting companies to reduce selling prices for the first time in six months amid strong market competition.
Backlogs of work increased sharply, the fastest since August 2018, due to higher orders and constrained capacity.
The survey showed a marked softening of business activity expectations for the year ahead across the non-oil economy, however.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Blacklane, Lucid partner to boost sustainable mobility in Kingdom
Blacklane, Lucid partner to boost sustainable mobility in Kingdom

Arab News

time6 hours ago

  • Arab News

Blacklane, Lucid partner to boost sustainable mobility in Kingdom

Blacklane, a global chauffeur service, and Lucid Group, maker of advanced electric vehicles, have announced a strategic partnership to expand sustainable, premium transportation solutions across Saudi Arabia. Through this collaboration, Lucid's vehicle lineup will be integrated into Blacklane's chauffeur service platform across the Kingdom. The partnership will support Blacklane on its trajectory to double operations in the region by the end of 2025, including significantly expanding services in key cities like Riyadh and Jeddah. The agreement represents Blacklane's most ambitious initiative to date, aimed at expanding a robust network of electric vehicle options within the region's mobility sector, and furthers Lucid's ongoing efforts to provide more opportunities to experience its advanced electric vehicles in the region. To further support this effort, Lucid and Blacklane will also work together to support the rollout of EV charging infrastructure in the region. 'Our relationship with Lucid marks a significant step forward in our global mission to deliver high-end, sustainable and scalable mobility solutions and a key milestone to further electrifying the Kingdom,' said Dr. Jens Wohltorf, CEO and co-founder of Blacklane. 'Together we are investing to set new industry standards and are proud to be part of a thriving and innovative business culture in the Kingdom of Saudi Arabia, fostered by Vision 2030.' 'Partnering with Blacklane reflects our strong commitment to pioneering the future of mobility in the Kingdom of Saudi Arabia,' said Faisal Sultan, president, Middle East at Lucid. 'Through this partnership, Blacklane guests will now have access to the Lucid lineup, including the award-winning Lucid Air sedan and the new Lucid Gravity SUV, offering superior range, elevated comfort, and extensive room for guests and all their luggage.' The Lucid Air sedan will be available to Blacklane guests immediately. The Lucid Gravity SUV will be added later this year as the rollout of the new SUV intensifies.

AWPT's vision for sustainable water leadership: growth, green goals, and global expansion
AWPT's vision for sustainable water leadership: growth, green goals, and global expansion

Arab News

time14 hours ago

  • Arab News

AWPT's vision for sustainable water leadership: growth, green goals, and global expansion

TASHKENT: As the Middle East embraces transformation under the banner of sustainability and economic diversification, water security stands as one of the most critical obstacles and opportunities of our time. At the helm of addressing this challenge in Saudi Arabia is Alkhorayef Water & Power Technologies, also known as AWPT. This company has not only solidified its market leadership but is now actively expanding its international footprint. In an exclusive interview with Arab News, Rami Moussilli — CEO of AWPT since 2014 — shared key insights into the company's strong performance in 2024, its alignment with Vision 2030, and its ambitions beyond Saudi Arabia. Speaking at the Tashkent International Investment Forum, Moussilli told Arab News that AWPT is supporting Uzbekistan's Sustainable Development Vision. Uzbekistan is a key international focus for AWPT as the country undergoes significant transformation through infrastructure modernization and sustainable development. Moussilli noted that AWPT has held high-level discussions with multiple ministries, which culminated in a meeting with the president of Uzbekistan. 'There is strong alignment between our core strengths and Uzbekistan's national development priorities,' said Moussilli. As Uzbekistan ramps up investment in urban expansion and essential services, AWPT is offering support across the entire water infrastructure lifecycle— from system rehabilitation and advanced wastewater treatment to non-revenue water reduction and energy-efficient technologies. AWPT's approach in Uzbekistan is built on three foundational pillars: strengthening public-private partnership frameworks, delivering engineering excellence, and promoting environmental and economic sustainability With a focus on knowledge transfer and local capacity building, AWPT is not just exporting services; it is building lasting partnerships. A model for the future of water AWPT sets itself apart from others in the sector with its integrated delivery model. By operating across all stages of the water asset lifecycle — from design and construction to operation and rehabilitation — AWPT achieves efficiencies that traditional players often miss. This holistic approach allows the company to offer clients and investors a unique value proposition: resilient profitability and proven risk management. AWPT closed 2024 with what Moussilli described as 'a year of exceptional performance and strategic progress.' The financial numbers support this assertion. Net income surged by an impressive 64 percent over the previous year, while revenues rose by 16 percent, underscoring both strong demand and operational excellence. Profit margins also improved significantly, growing from 8.2 percent to 12 percent, and earnings per share followed suit with over 64 percent growth. The company's shareholder equity expanded by 44 percent, further bolstered by a return on equity of 38 percent and a return on assets of 35 percent, clear indicators of efficient capital and resource management. Notably, AWPT ended the year with a 300 percent increase in free cash flow, a critical marker of financial health in a capital-intensive sector. Powering Vision 2030 through water privatization At the heart of AWPT's strategy lies a firm alignment with the Saudi National Water Strategy 2030, which outlines the privatization of key infrastructure sectors, including water treatment, wastewater management, and the reuse of treated effluents. Moussilli emphasizes the instrumental role water infrastructure plays in national development, saying: 'Water is no longer just a utility — it is a strategic pillar for economic resilience and public health.' AWPT's integrated services span the entire water and wastewater value chain — from engineering, procurement, and construction to operation and maintenance, public-private partnerships, and city management contracts. This depth of capability positions the company to benefit from the estimated $200 billion in upcoming water infrastructure investments under Vision 2030. Sustainability at the core With increasing global attention to environmental conservation, AWPT has integrated sustainability into its operational DNA. Serving over 26 million people across the Kingdom, the company advocates resource optimization, water quality, and long-term resilience. 'Our sustainable water practices are rooted in prevention, remediation, and efficiency,' said Moussilli. This includes proactive leak detection and repair of water lines, maintenance of sewage lines to prevent environmental contamination, and advanced treatment of sludge to enable its reuse in agriculture or other sectors. 'Every drop we save is a step toward decarbonizing our sector,' he added, noting that AWPT's treatment of wastewater not only protects the environment but also allows for the reuse of treated effluent for irrigation, reducing reliance on freshwater sources. Strategic objectives: local strength, global reach With its commanding position in the Saudi market, AWPT is setting its sights on international expansion. Moussilli outlined a three-pillar strategy for the future, including a focus on sustaining market leadership in Saudi Arabia by capturing new value pools across water and wastewater infrastructure. Expanding into global markets and leveraging AWPT's superior operating capabilities and integrated model as competitive advantages is another part of the vision, with diversifying into new environmental services and creating synergies around its water-centric core competencies the final pillar. This strategy is underpinned by AWPT's unique ability to grow both top-line and bottom-line performance simultaneously while preserving a strong balance sheet, enabling resilience even amid inflation and rising interest rates.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store